Case Brief
RBI, by order dated March 17, 2021, imposed a monetary penalty of ₹50 lakh on The Irinjalakuda Town Co-operative Bank Ltd. No.55, Irinjalakuda, Thrissur District, Kerala. The penalty was levied for contravention of and non-compliance with RBI directions on 'Income Recognition and Asset Classification' and 'Management of Advances – UCBs'. RBI said the action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS), after an inspection based on the bank's financial position as on March 31, 2019, a show-cause notice, and consideration of the bank's reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 50.0 L
- Entity Type
- Co-operative bank
- Location
- Irinjalakuda, Kerala